ST. PETERSBURG, Fla May 5, 2004 First Advantage Corporation, a global risk management solutions provider, today announced the acquisition of substantially all of the assets of CIC Enterprises, an Indianapolis, Ind. based company specializing in the identification and processing of tax and incentive credits, sales and use-tax services, transportation tax services and tax consulting services. With many of its tax incentive services tied to corporate employment, CIC provides a complementary business line to First Advantage's employment screening services, creating cross-selling opportunities between First Advantage's extensive corporate employer client base and CIC's clientele.
Founded in 1980, CIC's 130 employees assist clients in identifying primarily employment-related tax incentive programs available under both federal and state legislation, and processing the time-consuming and often cumbersome paperwork required to capture such tax incentives and credits.
CIC also offers comprehensive sales and use tax consulting services to assist clients with compliance with changing laws and regulations affecting sales and use taxes. On behalf of their clients, CIC identifies and recovers overpayments, establishes a system to avoid future overpayments, and provides ongoing auditing of purchases to ensure program effectiveness.
Additionally, CIC offers transportation consulting services that are designed to address and resolve asset management and compliance problems for owners and operators of truck fleets. The company uses its personnel's combined experience of more than 100 years in transportation asset management to identify cost-saving measures for its clients and to keep them apprised of federal and state law compliance requirements for truck fleets. CIC's services also include maintaining and updating each vehicle's title, license, credentials, mileage, fuel and property-tax data, as well as preparing federal fuel-tax returns and assisting companies in the recovery of fuel taxes paid on qualified vehicles.
"As First Advantage continues to execute its acquisition strategy, we seek to provide end-to-end solutions for our customers in the management of their businesses," said John Long, president and chief executive officer of First Advantage Corporation. "The addition of CIC adds a new dimension to our enterprise screening segment, particularly in the areas of employment screening and substance abuse testing. Not only does the acquisition allow us to maximize the strong relationships we currently have with America's employers, but it also helps us develop new relationships with key tax and transportation decision makers that may have an interest in First Advantage's other services. We are very pleased to complete this transaction -- our largest acquisition to date -- and look forward to CIC's solid contribution to our earnings going forward."
Carl Cohen, chief executive officer of CIC, said: "CIC is at an exciting crossroad in its history. We spent the first 20 years of our existence becoming a leader in tax incentive identification and administration, and now we have the opportunity to contribute to the development of integrated employer services."
Beth Henricks, president of CIC, added: "Becoming a First Advantage company allows us to better respond to our clients' requests for a more complete business process and human resources program. We're pleased to join this industry leader and, together, look forward to utilizing First Advantage's existing business lines to develop a best-in-class integrated solution for our clients."
Beth Henricks and Timothy Lima, executive vice president and chief operating officer for CIC, will continue to be employed by CIC in their current capacities and will manage its day-to-day operations. Carl Cohen will remain involved in a consulting capacity. Veronis Suhler Stevenson advised CIC Enterprises in this transaction.
The purchase price may be subject to an adjustment pending the renewal of certain tax incentive legislation currently pending in Congress.
About First Advantage Corporation
First Advantage Corporation provides best-in-class single-source solutions for global risk mitigation and enterprise and consumer screening needs. Incorporating state-of-the-art technology, proprietary systems and data resources, First Advantage is a leading provider of employment background screening, drug-free workplace programs and other occupational health testing, employee assistance programs, resident screening, motor vehicle records, investigative and digital data services, supply chain security and consumer location services. First Advantage ranks among the top three companies in all of its major business lines. First Advantage is headquartered in St. Petersburg, Fla., and has more than 1,700 employees in offices throughout the United States and abroad. Further information about the company is available at http://www.fadv.com.
First Advantage is a majority-owned subsidiary of The First American Corporation , a Fortune 500 company that traces its history to 1889. First American is the nation's largest data provider, supplying businesses and consumers with information resources in connection with the major economic events of people's lives. Additional information about the First American Family of Companies can be found at http://www.firstam.com.
About Veronis Suhler Stevenson
Veronis Suhler Stevenson is a leading independent private equity firm dedicated to the media, communications and information industries. Veronis Suhler Stevenson has completed over 630 transactions since its inception in 1981. The firm has acted as a financial advisor across the full spectrum of media, communication and information segments and provides the following services: private equity investment and mergers & acquisitions advisory services. VS&A Communications Partners III, LP is the third private equity fund managed by Veronis Suhler Stevenson. Capitalized at over $1 billion, it is one of the largest private equity funds dedicated exclusively to investments in the media, communications and information industries. The VSS Private Equity buyout funds have invested in 33 platform companies and 153 add-on acquisitions, across multiple media segments; the realized and unrealized enterprise value of these investments total approximately $7 billion.